DVA has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of DaVita HealthCare Partners Inc was -0.76. The lowest was -3.52. And the median was -2.60.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of DaVita HealthCare Partners Inc for today is based on a combination of the following eight different indices:
|M||=||-4.84||+||0.92 * DSRI||+||0.528 * GMI||+||0.404 * AQI||+||0.892 * SGI||+||0.115 * DEPI|
|=||-4.84||+||0.92 * 1.0683||+||0.528 * 1.0139||+||0.404 * 0.9556||+||0.892 * 1.0835||+||0.115 * 1.0153|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0579||+||4.679 * -0.0222||-||0.327 * 1.0029|
|This Year (Sep15) TTM:||Last Year (Sep14) TTM:|
|Accounts Receivable was $1,700 Mil.|
Revenue was 3525.665 + 3434.618 + 3287.965 + 3328.017 = $13,576 Mil.
Gross Profit was 1024.65 + 988.542 + 925.353 + 961.556 = $3,900 Mil.
Total Current Assets was $4,738 Mil.
Total Assets was $18,895 Mil.
Property, Plant and Equipment(Net PPE) was $2,622 Mil.
Depreciation, Depletion and Amortization(DDA) was $628 Mil.
Selling, General & Admin. Expense(SGA) was $1,403 Mil.
Total Current Liabilities was $2,411 Mil.
Long-Term Debt was $9,082 Mil.
Net Income was 215.872 + 170.477 + -110.617 + 208.02 = $484 Mil.
Non Operating Income was 2.484 + -150.009 + -0.533 + 0.229 = $-148 Mil.
Cash Flow from Operations was 678.996 + 31.442 + 410.089 + -69.991 = $1,051 Mil.
|Accounts Receivable was $1,469 Mil.
Revenue was 3251.824 + 3172.489 + 3042.776 + 3063.209 = $12,530 Mil.
Gross Profit was 925.29 + 925.951 + 863.004 + 935.377 = $3,650 Mil.
Total Current Assets was $4,178 Mil.
Total Assets was $18,101 Mil.
Property, Plant and Equipment(Net PPE) was $2,359 Mil.
Depreciation, Depletion and Amortization(DDA) was $576 Mil.
Selling, General & Admin. Expense(SGA) was $1,224 Mil.
Total Current Liabilities was $2,598 Mil.
Long-Term Debt was $8,381 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1699.892 / 13576.265)||/||(1468.563 / 12530.298)|
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(988.542 / 12530.298)||/||(1024.65 / 13576.265)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (4737.886 + 2621.918) / 18894.828)||/||(1 - (4178.435 + 2359.203) / 18101.416)|
4. SGI = Sales Growth Index
Ratio of sales in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
|DEPI||=||(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))||/||(Depreciation_t / (Depreciaton_t + PPE_t))|
|=||(576.067 / (576.067 + 2359.203))||/||(628.294 / (628.294 + 2621.918))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
|SGAI||=||(SGA_t / Sales_t)||/||(SGA_t-1 /Sales_t-1)|
|=||(1403.305 / 13576.265)||/||(1224.346 / 12530.298)|
7. LVGI = Leverage Index
The ratio of total debt to total assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((9082.096 + 2410.554) / 18894.828)||/||((8380.903 + 2597.631) / 18101.416)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(483.752 - -147.829||-||1050.536)||/||18894.828|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
DaVita HealthCare Partners Inc has a M-score of -2.47 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
DaVita HealthCare Partners Inc Annual Data
DaVita HealthCare Partners Inc Quarterly Data